Regulatory modes and Entrepreneurship: the Mediational Role of Alertness in Small Business Success

Abstract

Previous studies suggest that entrepreneurs play a key role in the success of their ventures. But relatively little is currently known about how they produce such effects. The present research provides data suggesting that two modes of entrepeneurs’ self-regulation—locomotion and assessment—enhance a firm's success through their effects on the components of alertness. This mediational model was tested and supported with data from 120 entrepreneurs. Locomotion was positively related to the scanning and search component, while assessment was positively related to the association and evaluation components. These findings are discussed in terms of the role of founders’ self-regulation in the performance of their companies